Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums). That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here is one stock under $10 with explosive upside potential and two best left ignored.
Two Stocks Under $10 to Sell:
Offerpad (OPAD)
Share Price: $1.97
Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE: OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.
Why Do We Think OPAD Will Underperform?
- Performance surrounding its homes purchased has lagged its peers
- Projected 10.5 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Negative EBITDA restricts its access to capital and increases the probability of shareholder dilution if things turn unexpectedly
Offerpad is trading at $1.97 per share, or 0.1x forward price-to-sales. Read our free research report to see why you should think twice about including OPAD in your portfolio.
JELD-WEN (JELD)
Share Price: $2.67
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.
Why Are We Out on JELD?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $2.67 per share, JELD-WEN trades at 1.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than JELD.
One Stock Under $10 to Watch:
SmartRent (SMRT)
Share Price: $1.96
Founded by an employee at a real estate rental company, SmartRent (NYSE: SMRT) provides smart home devices and software for multifamily residential properties, single-family rental homes, and student housing communities.
Why Does SMRT Catch Our Eye?
- ARR growth averaged 22.9% over the past two years, showing customers are willing to take multi-year bets on its offerings
- Earnings per share grew by 24.1% annually over the last three years, massively outpacing its peers
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
SmartRent’s stock price of $1.96 implies a valuation ratio of 119.6x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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